Photronics, Inc. (NASDAQ: PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, today reported financial results for the second quarter
ended April 29, 2012.
Constantine (“Deno”) Macricostas, Photronics' chairman and chief
executive officer commented, “Our strong performance in the second
quarter once again reflects the success of our high-end strategy
and diligent focus on cost controls. We reported robust growth in
both advanced IC and FPD product revenues. We leveraged this growth
with our lean operating model to achieve higher-than-expected
earnings for the quarter. We believe the results from our
technology investments continue to produce meaningful market share
gains and strengthen our customer relationships.”
Sales for the second quarter of fiscal 2012 were $117.5 million,
up 5% compared with $112.2 million in revenue reported for the
first quarter of fiscal 2012. Sales for the second quarter of
fiscal 2011 were $133.1 million. Sales of semiconductor photomasks
were $89.1 million, or 76% of revenues, during the second quarter
of fiscal 2012, and sales of flat panel display (FPD) photomasks
were $28.4 million, or 24% of revenues. GAAP net income
attributable to Photronics, Inc. for the second quarter of fiscal
2012 was $8.8 million, or $0.14 per diluted share, compared with
GAAP net loss attributable to Photronics, Inc. of $16.4 million, or
$(0.30) per diluted share, for the second quarter of fiscal
2011.
Non-GAAP net income attributable to Photronics, Inc. for the
second quarter of 2012, excluding restructuring charges of $0.1
million, was $8.9 million, or $0.14 earnings per diluted share.
Non-GAAP net income attributable to Photronics, Inc. for the second
quarter of 2011, excluding debt extinguishment losses of $30.5
million, was $14.8 million, or $0.24 earnings per diluted share.
The section below entitled "Non-GAAP Financial Measures" provides a
definition and information about the use of non-GAAP financial
measures in this press release, and the attached financial
supplement reconciles non-GAAP financial information with
Photronics, Inc.'s financial results under GAAP.
Sales for the first six months of 2012 decreased 10% to $229.6
million from $253.9 million for the first six months of fiscal
2011. Sales of semiconductor photomasks were $175.9 million, or 77%
of revenues for the first six months of 2012, and sales of FPD
photomasks were $53.7 million, or 23% of revenues. GAAP net income
attributable to Photronics, Inc. for the first six months of fiscal
2012 was $13.1 million, or $0.21 per diluted share, compared with
net loss of $4.3 million, or $(0.08) per share in the first six
months of the prior year. Non-GAAP net income attributable to
Photronics, Inc. for the first six months of fiscal 2012, which
excludes $1.2 million of restructuring charges and a $0.1 million
gain relating to warrants, was $14.2 million, or $0.23 per diluted
share. Non-GAAP net income attributable to Photronics, Inc. for the
first six months of fiscal 2011, which excludes $30.5 million of
debt extinguishment losses, was $27.0 million, or $0.44 per diluted
share.
Non-GAAP Financial Measures
Non-GAAP net income (loss) attributable to Photronics, Inc. and
non-GAAP earnings (loss) per share are "non-GAAP financial
measures," as such term is defined by the Securities and Exchange
Commission, and may differ from non-GAAP financial measures used by
other companies. Photronics, Inc. believes that non-GAAP net income
(loss) attributable to Photronics, Inc. and non-GAAP earnings
(loss) per share that exclude certain non-cash or non-recurring
income or expense items are useful for analysts and investors to
evaluate Photronics, Inc.'s future on-going performance because
they enable a more meaningful comparison of Photronics, Inc.'s
projected earnings and performance with its historical results of
prior periods. These non-GAAP metrics, in particular non-GAAP net
income (loss) attributable to Photronics, Inc. and non-GAAP
earnings (loss) per share are not intended to represent funds
available for Photronics, Inc.'s discretionary use and are not
intended to represent, or be used as a substitute for, operating
income (loss), net income (loss) or cash flows from operations data
as measured under GAAP. The items excluded from these non-GAAP
metrics, but included in the calculation of their closest GAAP
equivalent, are significant components of the consolidated
statements of operations and must be considered in performing a
comprehensive assessment of overall financial performance. Non-GAAP
financial information is adjusted for the following items:
- Consolidation and restructuring charges
in fiscal 2012 are excluded because they are not a part of ongoing
operations.
- Impact of financing expenses related to
warrants is excluded because it does not affect cash earnings.
- Loss on extinguishment of debt is
excluded in fiscal 2011 because it is not a part of ongoing
operations and was not anticipated when establishing forecast
guidance for the second quarter of fiscal 2011.
The presentation of this financial information should not be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with accounting
principles generally accepted in the United States. The attached
financial supplement reconciles non-GAAP financial information with
Photronics, Inc.'s financial results under GAAP.
A conference call with investors and the media to discuss these
results is scheduled for 8:30 a.m. Eastern time on Tuesday, May 15,
2012. The call can be accessed by logging onto Photronics' web site
at www.photronics.com. The live dial-in number is 408-774-4601. The
call will be archived for instant replay access until the Company
reports its fiscal 2012 third quarter results.
# # #
Photronics is a leading worldwide manufacturer of photomasks.
Photomasks are high precision quartz plates that contain
microscopic images of electronic circuits. A key element in the
manufacture of semiconductors and flat panel displays, photomasks
are used to transfer circuit patterns onto semiconductor wafers and
flat panel substrates during the fabrication of integrated
circuits, a variety of flat panel displays and, to a lesser extent,
other types of electrical and optical components. They are produced
in accordance with product designs provided by customers at
strategically located manufacturing facilities in Asia, Europe, and
North America. Additional information on the Company can be
accessed at www.photronics.com.
The Private Securities Litigation Reform Act of 1995 provides a
“safe harbor” for forward-looking statements made by or on behalf
of Photronics, Inc. and its subsidiaries (the Company). The
forward-looking statements contained in this press release and
other parts of Photronics’ web site involve risks and uncertainties
that may affect the Company’s operations, markets, products,
services, prices, and other factors. These risks and uncertainties
include, but are not limited to, economic, competitive, legal,
governmental, and technological factors. Accordingly, there is no
assurance that the Company’s expectations will be realized. For a
fuller discussion of the factors that may affect the Company's
operations, see "Forward Looking Statements" in the Company's
Quarterly and Annual Reports to the Securities and Exchange
Commission on Forms 10-Q and 10-K. The Company assumes no
obligation to provide revisions to any forward-looking
statements.
09-2012
PLAB – E
PHOTRONICS, INC.
AND SUBSIDIARIES
Reconciliation of
GAAP to non-GAAP Financial Information
(in thousands) (Unaudited)
Three Months Ended
Six Months Ended April 29, May
1, April 29, May 1, 2012
2011 2012 2011
Reconciliation of
GAAP to Non-GAAP Net Income (Loss) Attributable to Photronics,
Inc.
GAAP net income (loss) attributable to Photronics, Inc. $
8,818 $ (16,438 ) $ 13,086 $ (4,327 )
(a)
Debt extinguishment loss and net interest
impact, net of tax
- 30,513 - 30,513
(b)
Consolidation and restructuring charges,
net of tax
58 - 1,176 -
(c)
Impact of warrants, net of tax
- 745 (94 ) 820
Non-GAAP net income attributable to Photronics, Inc. $ 8,876
$ 14,820 $ 14,168 $ 27,006
Reconciliation of
GAAP to Non-GAAP Net Income (Loss) Applicable to Common
Shareholders
Weighted average number of diluted shares outstanding
GAAP 76,590 55,685 76,472
54,751
(d)
Non-GAAP
76,590 67,047 76,435
66,634 Net income (loss) per diluted share
GAAP $ 0.14 $ (0.30 ) $ 0.21 $ (0.08 )
Non-GAAP $ 0.14 $ 0.24 $ 0.23 $ 0.44
(a)
Represents 2011 extinguishment charge
related to the repurchase of $30.4 million of our 5.50% convertible
senior notes due in October 2014, and net interest impact on
convertible transactions.
(b)
Represents consolidation and restructuring
charges primarily related to restructuring in Singapore.
(c)
Represents financing expenses related to
warrants, which are recorded in other income (expense).
(d)
Excludes the 2011 impact of shares issued
on March 29, 2011 (1.7 million shares during the three months ended
May 1, 2011 and 0.8 million shares during the six months ended May
1, 2011), primarily related to the issuance of common stock in
exchange for $30.4 million of our 5.5% convertible senior notes due
in October 2014.
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Operations
(in thousands, except per share amounts) (Unaudited)
Three Months Ended Six Months Ended April
29, May 1, April 29, May 1,
2012 2011
2012
2011 Net sales $ 117,451 $ 133,103 $ 229,605 $
253,926 Costs and expenses: Cost of sales (87,590 )
(96,617 ) (174,286 ) (186,845 ) Selling, general and
administrative (12,201 ) (11,448 ) (23,526 ) (22,162 )
Research and development (4,441 ) (3,940 ) (8,885 ) (7,711 )
Consolidation, restructuring and related charges (58 )
- (1,176 ) - Operating
income 13,161 21,098 21,732 37,208 Debt extinguishment loss
- (30,286 ) - (30,286 ) Other expense, net (968 )
(2,585 ) (1,377 ) (1,629 ) Income
(loss) before income taxes 12,193 (11,773 ) 20,355 5,293
Income tax provision (2,663 ) (3,260 ) (5,984
) (6,742 ) Net income (loss) 9,530 (15,033 ) 14,371
(1,449 ) Net income attributable to noncontrolling interests
(712 ) (1,405 ) (1,285 ) (2,878 )
Net income (loss) attributable to Photronics, Inc. $ 8,818
$ (16,438 ) $ 13,086 $ (4,327 ) Earnings
(loss) per share: Basic
$ 0.15
$ (0.30 ) $
0.22 $ (0.08
) Diluted
$ 0.14
$ (0.30 )
$ 0.21 $
(0.08 )
Weighted average number of common shares
outstanding:
Basic
60,086 55,685
59,952 54,751
Diluted
76,590
55,685 76,472
54,751
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(in thousands) (Unaudited)
April 29,
October 30, 2012 2011
Assets
Current assets: Cash and cash equivalents $ 191,960 $
189,928 Accounts receivable 89,123 85,540 Inventories 20,453 22,100
Other current assets 8,359 7,639
Total current assets 309,895 305,207 Property, plant and
equipment, net 382,800 368,680 Investment in joint venture 85,831
79,984 Intangible assets, net 39,918 42,462 Other assets
20,803 21,521 $ 839,247 $
817,854
Liabilities and
Equity
Current liabilities: Current portion of long-term borrowings
$ 7,874 $ 5,583 Accounts payable and accrued liabilities
81,394 90,318 Total current liabilities
89,268 95,901 Long-term borrowings 172,312 152,577 Other
liabilities 8,789 9,620 Equity 568,878
559,756 $ 839,247 $ 817,854
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(in thousands) (Unaudited)
Six Months Ended
April 29, May 1, 2012 2011
Cash flows from operating activities: Net income
(loss) $ 14,371 $ (1,449 )
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 44,135 46,467 Consolidation,
restructuring, and related charges 262 - Debt extinguishment loss -
23,504 Changes in assets and liabilities and other 3,631
(4,532 ) Net cash provided by operating
activities 62,399 63,990 Cash
flows from investing activities: Purchases of property, plant and
equipment (67,626 ) (39,254 ) Investment in joint venture (5,899 )
(8,498 ) Other (1,600 ) (250 ) Net cash used
in investing activities (75,125 ) (48,002 )
Cash flows from financing activities: Proceeds from long-term
borrowings 25,000 17,000 Proceeds from issuance of convertible debt
- 115,000 Repayments of long-term borrowings (2,343 ) (60,303 )
Payments of deferred financing fees (198 ) (4,145 ) Repurchase of
common stock by subsidiary (7,577 ) (3,294 ) Proceeds from exercise
of share-based arrangements 431 356
Net cash provided by financing activities 15,313
64,614 Effect of exchange rate changes
on cash (555 ) 6,565 Net increase in
cash and cash equivalents 2,032 87,167 Cash and cash equivalents,
beginning of period 189,928 98,945
Cash and cash equivalents, end of period
$
191,960
$
186,112
Photronics (NASDAQ:PLAB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Photronics (NASDAQ:PLAB)
Historical Stock Chart
From Jul 2023 to Jul 2024